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The Connected Home is Growing: WiFi Router Outranks Smartphone as #1 Technology US Adults Can't Live Without for More Than One Day

February 21, 2018

Security fears remain as consumers name hackers and lack of privacy from device manufacturers top smart home concerns

ST. PETERSBURG, Fla. – Feb. 21, 2018 – Consumer dependency on WiFi routers has surpassed the smartphone as the #1 technology US adults cannot live without for more than one day, according to data today released from the Customer and Product Experience 360 (CPX 360™) Survey by iQor, the only global managed services provider embedded in the flow between product, people and services.

As the life-blood for the connected ecosystem, a functioning WiFi router is necessary for consumers to enjoy smart devices and the connected lifestyle, including smart TVs and streaming devices, multiplayer gaming, tablets, voice controlled virtual assistants and smart speakers, telehealth devices and IoT-enabled security systems. Currently, nearly two-thirds of US adults (64 percent) couldn’t be without WiFi for more than one day. As the smart home market and diversity of connected devices continues to grow, dependence on WiFi routers and smart home hubs will continue to intensify: the proliferation of smart devices is forecast to reach 20.4 billion globally by 2020, almost doubling from an estimated 11.1 billion in 2018.

"The fact that the WiFi-connected smart home is the most important technology consumers don't want to be without–over the smartphone–is a shift that technology experts and brands must understand and plan for, because this is a relatively new market and consumer adoption is not yet mainstream,” said Autumn Braswell, COO, LinQ Integrated Solution at iQor. "Currently, there is no clear brand owning the connected home customer experience. We believe that whoever can help consumers fully realize the potential of the connected home reality—and connect multiple devices for maximum impact, security and efficiency—will emerge as the brand leader five years from now."

At the same time, as increased adoption of multiple smart home devices and appliances has heightened dependence on connectivity in the home, the CPX 360 survey also revealed other, pressing smart home-related concerns.

IoT Security Concerns Top Consumer Smart Home Fears

As the smart home grows in popularity, IoT security concerns remain top of mind for consumers. The CPX 360 survey reports that more than two-thirds (70 percent) of consumers are concerned about the lack of security from hackers who might hack into smart devices in the home; these apprehensions escalate among older generations, as nearly four out of five baby boomers (79 percent) are fearful of hackers breaching a smart connected device in their home. Data and privacy fears rank second among consumer smart home concerns. More than half of US adults (58 percent) fear lack of privacy from device manufacturers who have access to data, real-time conversations, voice patterns and search history. These security concerns are a potential barrier for mass consumer connected home adoption.

“Consumer concerns about data privacy and security, including both the unauthorized hacking of devices and theft of device data, consistently rank as one of the leading concerns about connecting devices to the Internet,” says Brad Russell, Research Director for Connected Home, Parks Associates. “Companies are working to adopt best practices for IoT data security and management to allay concerns and deliver peace of mind, including more stringent efforts to secure the home network by deep inspection of incoming and outgoing traffic and monitoring of edge devices to alert for anomalous behavior.”

Consumers Fear “Cascade Effect” Among Connected Home Devices

The promise of the connected ecosystem is that multiple devices will work in harmony to share information and simplify tasks. However, the CPX 360 survey reports that consumers are afraid of the “cascade effect” in the smart home ecosystem. More than half of consumers (54 percent) fear that if one devices fails it will cause other connected devices in the home to fail.

This is especially troubling to the consumers because they are already having problems connecting smart devices to the internet, configuring settings and interacting with other devices. Overall, in the past two years, 63 percent of survey respondents had set up issues and 48 percent had operation issues. Connecting the device to interact with other devices was difficult for nearly one third of consumers (31 percent).

“The connected home contains multiple devices, from a variety of device manufacturers, that are all supposed to work together in harmony. When an issue arises, consumers often do not know how to identify where the issue resides: with connectivity to the internet, with the device itself or with a different device it is connected to,” said Braswell. “This gray area causes confusion with both the customer, as well as customer service departments for various device brands. The fear of the ‘cascade effect’ is real if consumers are already having smart home connectivity, set-up or operation issues.”

Brands can offset issues increasing the “cascade effect” in the connected home by educating consumers and retooling product delivery and customer support methods.

“The smart home and connected ecosystem is designed to transform consumers’ lives by simplifying tasks and providing an added layer of intelligence to devices with actionable insights for the consumer,” said Hartmut Liebel, CEO of iQor. “Consumers will adopt and try a number of different devices and those that enhance their lives and work seamlessly will secure a permanent place in the connected home. The ability to easily operate these connected devices and services, and to readily obtain customer support when needed, will be the crucial factor in adoption. Brands need to expand proactive engagement efforts and simplify products to minimize set-up frustration and directly address consumer concerns around privacy and security.”

Consumers Worried IoT Leading to Heightened Dependence on Technology

The increased value of the WiFi router speaks to the growing adoption of the smart home lifestyle and the desire for the convenience that the connected ecosystem provides, but consumers have reservations about IoT creating an unhealthy dependence on technology. More than half of US adults (53 percent) are concerned that IoT and smart devices will lead to a heightened dependence on technology to conduct daily tasks.

The CPX 360 survey reports that more than 90 percent of consumer households today have a smartphone and that new connected technology is rapidly being adopted. Almost half of consumer households (42 percent) have a smart TV, nearly one in four have a health wearable device, like a Fitbit, and 16 percent have a voice controlled virtual assistant, like Alexa or Google home.

The Customer and Product Experience (CPX) 360 Survey was conducted online by SSI and commissioned by iQor, the only global managed services provider embedded in the flow between product, people and services. The study consists of two survey bases: 1) US adults age 18-65; balanced to US Census proportions on gender, age and region (n = 6,346) and 2) U.S adults 18 and up living in a “smart household” environment (n = 1,004). Data was collected between Nov. 9 to Nov. 17, 2017 – to gauge customer experience and customer service expectations of buyers of consumer technology in today’s digital age. All “smart household” respondents indicated they own or regularly use: a smartphone, a computer (desktop, laptop or tablet), and two or more “smart” devices; and indicating they have had a problem or issue setting up or attempting to operate a technology product, device or service in the past two years.

About iQor

iQor is a managed services provider of customer engagement and technology-enabled BPO solutions. With 45,000 employees in 9 countries, we partner with many of the world's best-known brands to deliver aftermarket product and customer support solutions that span the consumer value chain, from customer care and receivables management to product diagnostics and repair services. Our award-winning technology, logistics, and analytics platforms enable us to measure, monitor, and analyze brand interactions, improve business processes, and find operational efficiencies that lead to superior outcomes for our partners across the customer and product life cycles. For more information, please visit us at www.iqor.com or follow us at www.twitter.com/iqor.